Diwali boosts Dalal Street as Sensex jumps nearly 700 points on strong earnings.
Indian stock markets kicked off the week with a strong rally on Monday, buoyed by robust performances in banking, financial, and energy sectors. Investors welcomed upbeat Q2 results from Reliance Industries Limited (RIL) and HDFC Bank, carrying the post-Diwali festive sentiment onto the trading floor.
By 9:23 am, the S&P BSE Sensex surged 673.90 points to 84,626.09, while the NSE Nifty50 rose 202.50 points to 25,912.35. Broader market indices also witnessed gains, and volatility remained subdued during the session.
Reliance Industries led the rally, with its shares climbing nearly 3% after reporting strong quarterly earnings. The company posted higher consolidated net profit for September, driven by robust growth in retail and telecom (Jio) businesses, along with steady refining margins in its oil-to-chemicals segment.
HDFC Bank also impressed investors, reporting healthy net profit growth and improving asset quality, reinforcing confidence in India’s banking sector ahead of the festive season.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The market momentum, supported by sustained DII buying, marginal FII inflows, and brisk festive sales of automobiles and consumer goods, is likely to continue. Early Q2 results indicate a sharp recovery in earnings.”
He added that “strong results from HDFC Bank, particularly in asset quality, can sustain the Bank Nifty’s momentum, which is already trading at record highs.”
Short covering in recent sessions has further fueled the rally, pushing large-cap stocks higher. Analysts believe that with festival spending, strong corporate earnings, and active domestic institutional investor participation, equities are poised for near-term gains. Sectors such as banking, automobiles, energy, and consumption are expected to outperform in the coming weeks.
With solid earnings and festive cheer boosting sentiment, Dalal Street appears well-positioned to extend its winning streak and potentially hit new record highs before year-end.
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